Playstudios Agrees To Settlement Over Social Casino Virtual Chips Lawsuit

Playstudios has agreed to a $3 million settlement resolving a class action lawsuit that accused its social casino apps of selling virtual chips in breach of state gambling laws, according to a court-approved settlement notice filed in the Circuit Court of Franklin County, Alabama.

The case, White, et al. v. Playstudios US, LLC (Case No. 33-CV-2025-900186.00), covers players who spent money in myVEGAS Facebook, myVEGAS Mobile, myvegas.com, Pop! Slots, myKONAMI Slots, MGM Slots Live, myVEGAS Blackjack and myVEGAS Bingo, while located in Alabama, Ohio, New Jersey, Massachusetts, Tennessee or Kentucky. 

The lawsuit alleged that selling virtual chips for real money in casino-style games violated each state's gambling statutes. 

Playstudios denies all allegations and has not admitted liability, but has agreed to settle rather than continue litigating the claims.

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How The Payout Works

Under the settlement terms, class members who take no action will automatically receive virtual currency equal to 27% of their qualifying spend in the affected games. 

Those who file a valid election form instead can receive a cash payment worth up to 23% of their eligible spending, though that cash benefit is capped at a cumulative 17% of the total settlement fund; if cash elections exceed that cap, individual payouts are reduced, and the shortfall is paid out in virtual currency instead. 

Players wanting the cash option must submit their election by October 21, 2026, the same deadline for objecting to the deal or excluding themselves from the class entirely.

The qualifying time periods differ by state. Alabama claims run from March 8, 2022, through June 30, 2026; New Jersey claims from January 2, 2024, through June 30, 2026, and Kentucky claims cover an earlier window, from July 5, 2018, through June 29, 2023, reflecting when each state's underlying gambling statute was in force against the apps in question. 

A final approval hearing is scheduled for November 10, 2026, at 2:00pm, during which class members may ask to address the court directly regarding the settlement.

Part Of A Wider Legal Pattern

The settlement does not resolve the broader legal question hanging over the social casino sector: whether selling virtual currency that can be used, but not cashed out, in casino-style games amounts to illegal gambling under state law. 

Social casino operators, including Playstudios, have faced a string of similar suits in recent years, arguing that virtual chips function as a thing of value wagered on games of chance, even though players cannot withdraw winnings as real money. 

By settling rather than litigating to a verdict, Playstudios resolves its exposure in the six named states without a court ruling on that underlying legal theory, leaving the question open for other operators still facing comparable claims elsewhere. 

The settlement is being administered independently, with class members able to check their eligibility, file an election form, or review the full notice online, and the court retains the ability to adjust the final approval date if objections require further hearings.